Over the past few days, we’ve seen a spike in concern trolling editorials about the state of natural resources projects in Canada, predicated by Petronas’ decision to cancel the Pacific NorthWest LNG plant in BC. And reading through these editorials, be they from John Ivison, the National Post editorial board, or Licia Corbella (well, that one I’m not bothering to read or link to because she’s a fabulist who doesn’t deserve clicks), but the effect is the same – woe is Canada’s energy sector because of too much government regulation. They also claim that the excuse of market conditions is just political cover.
The problem with that, however, is that it doesn’t actually take the facts into account – it’s merely asserting their pre-existing narrative onto the situation, which is why it’s well worth your time to read Andrew Leach’s exploration of the economic case and conditions for why Pacific NorthWest didn’t go ahead. And when people like Ivison say that projects are going ahead in the US and Australia, Leach explains why (and it has a lot to do with pre-existing infrastructure that BC doesn’t have). So yes, there is a very big market reason why the project was cancelled, and perhaps these editorialists should actually read up on just what that is before they make facile pronouncements, because trying to force a narrative onto the facts is doing a disservice to Canadians.